Is Fibria Celulose SA (ADR) (FBR) A Good Stock To Buy?

Since Fibria Celulose SA (ADR) (NYSE:FBR) has sustained bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of funds who sold off their full holdings by the end of the third quarter. At the top of the heap, Clint Carlson’s Carlson Capital said goodbye to the biggest investment of the 700 funds monitored by Insider Monkey, totaling an estimated $5.9 million in stock. Ernest Chow and Jonathan Howe’s fund, Sensato Capital Management, also dumped its stock, about $0.8 million worth.

Let’s also examine hedge fund activity in other stocks similar to Fibria Celulose SA (ADR) (NYSE:FBR). We will take a look at Cypress Semiconductor Corporation (NASDAQ:CY), Transocean LTD (NYSE:RIG), Take-Two Interactive Software, Inc. (NASDAQ:TTWO), and Huntsman Corporation (NYSE:HUN). All of these stocks’ market caps resemble FBR’s market cap.

As you can see these stocks had an average of 38.5 hedge funds with bullish positions and the average amount invested in these stocks was $654 million. That figure was $40 million in FBR’s case. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is the most popular stock in this table. On the other hand Cypress Semiconductor Corporation (NASDAQ:CY) is the least popular one with only 31 bullish hedge fund positions. Compared to these stocks Fibria Celulose SA (ADR) (NYSE:FBR) is even less popular than CY. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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